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- 1 Hifi finance price is down 60% over the last day, cutting down from the 369% gains made in the last 7 days.
- 2 The leading spot exchange in South Korea was Upbit, which traded $717m worth of crypto in the past day.
- 3 The price of the Hifi finance is trading at $0.8620, and the 52-week range is $0.2960 – $2.6352.
After a long period of stability, Hifi Finance (HIFI) price soared for seven days in a row, delighting the investors who had been waiting for this moment. However, the price dropped soon after, as Bitcoin‘s (BTC) price stayed stagnant and the wider market looked for a trigger. At the same time, experts suggest that this is a good opportunity to invest in altcoins.
Hifi Finance (HIFI) price soared by 369% against Tether (USDT) stablecoin on Binance Exchange in a week. It closed at $2.320 on September 16, following a spike to $2.635 that surpassed the $2.5000 psychological mark.
The trading volume for Hifi Finance on Upbit, a Korean exchange, rose sharply and caused its price to soar. Wu Blockchain said that Upbit Korea was responsible for about 65% of the total trade of the token on Saturday, and noted a 208% increase and Upbit’s dominance in spot trading, with a trading volume of up to $717 million in the last 24 hours. However, the price has fallen by around 60% in the last day, due to Binance introducing the HIFI perpetual contract.
HIFI token has risen 208% in the past 7d. Upbit, South Korea's largest exchange, is the main spot player, with a trading volume of $717m in the past 24h. After Binance opened the HIFI perpetual contract on September 16, HIFI fell sharply, falling more than 30% from its high. HIFI…
— Wu Blockchain (@WuBlockchain) September 17, 2023
A perpetual contract is a type of derivative that allows two parties to agree on buying or selling an asset at a fixed price with no expiration date. This way, traders can leverage their positions and bet on the asset’s value without worrying about their contracts ending.
However, perpetual contracts also have a drawback, as they can quickly wipe out the equity of traders who took long positions if the asset’s price drops, and force them to close their contracts.
Perpetual contracts have more advantages than regular futures contracts, such as higher liquidity, lower spreads, and less vulnerability to market manipulation. Some Korean traders have been known to engage in pump-and-dump schemes, especially with altcoins, according to CryptoQuant CEO Ki Young Ju. He explained that this was due to the “Very strict capital controls, blocking arbitrage opportunities between global exchanges.”
Fun Fact 3.
— Ki Young Ju (@ki_young_ju) March 30, 2023
Korean crypto traders love pumping & dumping altcoins, ironically. Got this clip from my Korean friend. pic.twitter.com/63Ewssu5VO
Technical Analysis Of HIFI (HIFI) on 1-D TimeFrame
At the time of publishing, the HIFI finance price (BINANCE: HIFI) is trading barely above the 20, and 50-day EMAs (exponential moving averages).
The MACD line curve turned towards the signal line and aimed to cross it, if it succeeds, we may see more lows in upcoming sessions. Alternatively, if it reverses right from the CMP then the price might surge back to an all-time high again. The current value of the RSI is 51 points. Collectively, the indicators view is consolidation to bearish.
Conclusion
HIFI is a cryptocurrency that aims to provide decentralized finance solutions. Its price dropped by 60% in a day after Binance, a leading crypto exchange, introduced a perpetual contract for HIFI. A perpetual contract is a derivative that lets traders speculate on the future price of an asset without an expiry date. HIFI’s price was also influenced by the high trading volume from Korean traders, who face strict capital controls and limited arbitrage opportunities. HIFI’s price is trading above the moving averages, but the indicators show a bearish trend.
Disclaimer
In this article, the views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
